Petrol, diesel price hiked for third consecutive day

Web desk 09/06/2020
Fuel prices were hiked again on Tuesday, the third successive day ending an 82-day hiatus in rate revision by the oil PSUs. Petrol price was hiked by 54 paise per litre and diesel by 58 paise a litre — the third successive day straight  daily increase in rates after oil PSUs ended an 82-day hiatus in rate revision.
Petrol price in Delhi was hiked to Rs.73.00 per litre from 72.46, while diesel rates were increased to Rs 71.17 a litre from Rs 70.59, according to a price notification of state oil marketing companies in line with costs, after ending an 82-day hiatus…
Prices were raised by 60 paise per litre each on both petrol and diesel on Sunday as well as on Monday. In all, petrol price has gone up by Rs 1.74 per litre and diesel by Rs 1.78 a litre in three days.

While oil PSUs have regularly revised Aviation Turbine Fuel (ATF) and LPG prices, they had since March 16 kept petrol and diesel prices on hold, ostensibly on account of extreme volatility in the international oil markets.

Auto fuel prices were frozen soon after the government raised excise duty on petrol and diesel by Rs.3 per litre each to mop up gains arising from falling international rates. The government on May 6 again raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.

Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1.